US faces a temporary fall over the fiscal cliff

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US faces a temporary fall over the fiscal cliff

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The US is facing a temporary slip over the so-called “fiscal cliff”. Pressure is piling on lawmakers to back a last-minute deal between the White House and Senate leaders to avert a set of severe tax increases and spending cuts.

The agreement will delay the cuts by two months. It comes after months of arguing, and is a compromise that pleases no one:

“My preference would have been to solve all these problems in the context of a larger agreement, a bigger deal, a grand bargain, whatever you want to call it, that solves our deficit problems in a balanced and responsible way.” Preisident Obama told supporters at a rally.

The Senate may hold a rare New Year’s Eve vote on the plan but the House of Representatives is unlikely to act until Tuesday. Congress would then miss its own deadline to avoid falling off the “fiscal cliff” – 600 billion dollars of spending cuts and tax hikes.